U.S. Session Forex Recap – Jan. 28, 2015

  • US durable goods orders: -3.4% vs. 0.3% expected, -2.1% previous
  • US core durable goods orders: -0.8% vs. 0.6% expected, -0.7% previous
  • US S&P Case-Schiller home prices: 4.31% vs. 4.3% expected, 4.47% previous
  • US new home sales: 481K vs. 450K expected, 431K previous
  • US consumer confidence: 10.9 vs. 95.5 expected, 93.1 previous
  • AU inflation report on tap

The dollar was triple roundhouse-kicked by its counterparts in yesterday’s U.S. forex trading session, as investors take positions ahead of the FOMC statement.

The low-yielding Greenback took hits on speculations that the Fed would dial down its tightening plans after the ECB had launched its QE program. It also didn’t help that headline numbers for the durable goods orders report had fallen by 3.4% and that U.S. equities generally ended the day in the red. Luckily for the bulls, S&P’s home price and consumer confidence numbers printed better-than-expected.

USD/JPY dropped to an intraday low of 117.34 before closing at 117.78 while GBP/USD rocketed by 80 pips (+0.53%) to 1.5201.

The euro found support not only from the SNB possibly intervening again in the markets, but also on rumors that EU and Greece are already renegotiating their bailout terms.

EUR/USD shot up by 80 pips (+0.71%) at 1.1380 after hitting a high at 1.1423 while EUR/JPY went up by 92 pips (+0.70%) to 134.03 and EUR/CHF jumped by another 62 pips (+0.61%) to 1.0246.

The Loonie also grabbed the headlines following a short rally in oil prices. USD/CAD slipped by 63 pips (-0.51%) while CAD/JPY rose by 49 pips (+0.52%) and AUD/CAD fell by 60 pips (-0.61%).

Will individual headlines fuel a possible dollar selloff today? Asian session forex traders just reacted to Australia’s inflation numbers released a few hours ago. The report printed better-than-expected numbers, which is probably why AUD is up across the board. Keep close tabs on your high-yielding trades in case we see risk-taking until the next trading sessions!

See also:

London Session Recap

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